CMS Energy priced an upsized offering of $850 million aggregate principal amount of its 3.125% convertible senior notes due 2031. The notes mature on May 1, 2031, bear interest at 3.125% per year payable semi‑annually, and are convertible at the option of holders after February 1, 2031. Initial purchasers also have the right to buy an additional $150 million within a 13‑day period.
Net proceeds will be used to retire $250 million of its 3.60% Senior Notes due November 15, 2025, and to fund general corporate purposes. The offering is expected to close on November 6, 2025, and is being conducted as a private placement under the Securities Act.
The conversion rate is 11.0360 shares per $1,000 principal, implying a conversion price of about $90.61 per share—roughly a 25% premium over the closing price of CMS Energy’s common stock on November 3, 2025, which was $72.49. The upsized offering follows a previously announced $750 million convertible notes issuance, reflecting strong investor demand.
CMS Energy reported third‑quarter 2025 earnings that exceeded analyst expectations, with earnings per share of $0.93 and revenue of $2.02 billion, up from $0.84 EPS and $1.90 billion revenue in the same quarter of 2024. Management highlighted continued growth in its Consumers Energy utility segment and investment in renewable generation projects, positioning the company for long‑term capital structure strength and future grid modernization initiatives. The company also disclosed a capital pipeline of more than $25 billion for grid modernization and renewable investments.
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